Exhibit 10.38


 


 


LEASE AGREEMENT


 


This LEASE AGREEMENT is entered into between ROWE MANAGEMENT, INC. (“Landlord”) and RESACA EXPLOITATION, INC.
(“Tenant”). For good consideration, the parties agree as
follows:


 


1.        Landlord hereby leases and
lets to Tenant the Premises, described as follows: 2600 WEST 1-20, Odessa,
Texas.


 


2.        This lease shall be for a
term of ONE YEAR commencing on JANUARY 1, 2009  and terminating DECEMBER 31, 2009. Tenant shall have the
right to renew the Lease for one (1) month periods beginning on January 1, 2010, provided that Tenant provides at least thirty (30) days’ written notice
of intent to renew.


 


3.        Tenant
shall pay Landlord monthly rental payments of $3,850.00 each payable monthly on the
first day of each month in advance. Tenant’s security deposit of $500.00 will be held in escrow, to
be returned upon termination of this Lease and the payment of all rents due and
performance of all other obligations. Tenant shall pay a $100.00 late fee if monthly payment is not
received in office by the 10th of each month.


 


4.        Tenant shall, at
its own expense, provide the following utilities or services: Electrical, dumpster fee and
contents insurance. Landlord shall, at its own expense provide
the following utilities and services: water and insurance on the building.


 


5.        Tenant further agrees that:


 


a)      Upon the expiration of the
Lease, it shall return possession of the Premises in their present condition,
reasonable wear and tear excepted. Fire casualty damaged is not considered
reasonable wear and tear. Tenant shall not commit waste to the leased premises.


 


b)      Tenant shall not assign or
sublet the Premises or allow any other person to occupy the Premises without
Landlord’s prior written consent.


 


c)      Tenant shall not make any
material or structural alterations to the Premises without Landlord’s written
consent.


 


d)      Tenant shall comply with all
building, zoning and health codes and other applicable laws for the use of said
the Premises.


 


e)      Tenant shall not conduct on
the Premises any activity deemed extra hazardous, or a nuisance, or requiring
an increase in fire insurance premiums.


 


f)       In the event of any breach of the payment of
rent or any other breach of this Lease, Landlord shall have full rights to
terminate this Lease in accordance with state law and re-enter and re-claim
possession of the


 


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Premises,
in addition to such other remedies available to Landlord arising from said
breach.


 


6.        This lease shall be binding upon and inure to the benefit of the
parties, their successors, assigns and personal representatives.


 


7.        This lease shall be
subordinate to all present or future mortgages against the property.


 


8.        Additional Lease terms: Repairs to the property or building that result from
repeated use of the facility (ex: clogged toilets, broken doors) or from
tenant’s misuse of the property or building shall be at the tenant’s expense.
Repairs that are structural in nature (ex: roof, foundation, major plumbing)
shall be at Landlord’s expense. Improvements demanded by Landlord shall be at
Landlord’s expense. Any repairs to the building’s heating,
ventilation and air conditioning system (“HVAC”) shall be at the tenant’s
expense, up to a maximum of $250 per year. HVAC repair costs in excess of $250
per year shall be at the expense of the Landlord. Any repairs or changes need
to go through Rowe Management Corp. offices first.


 


9.        Tenant shall provide at
least thirty (30) days’ written notice prior
to vacating the Premises.


 


10.      Rowe Management Corp.
must have a set of keys to the offices at all times.


 


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Signed this 15th day of
DECEMBER, 2008


 


By:


 


 


	
  /s/ RANDY ZIEBARTH

  	
   

  	
  Illegible

  
	
  RANDY ZIEBARTH

  	
   

  	
  LEASING AGENT

  
	
  VICE PRESIDENT OF OPERATIONS

  	
   

  	
   

  



 


 


All
correspondence with Tenant shall be directed to:


 


LEAH WHITE


OFFICE MANAGER


RESACA EXPLOITATION, INC. 


2600 WEST 1-20


ODESSA, TEXAS 79763-5100 


(432)580-8500


 


with
a copy to:


 


RANDY ZIEBARTH


VICE PRESIDENT OF OPERATIONS


TORCH ENERGY ADVISORS INCORPORATED


1331 LAMAR STREET; SUITE 1450


HOUSTON, TEXAS 77010


713-650-1246


 


MAIL PAYMENTS TO:


ROWE MANAGEMENT CORP.


4612 SCR 1311


ODESSA, TEXAS 79765


 


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